Severfield’s Indian joint venture continues to perform well

STRUCTURAL steel firm Severfield said its Indian joint venture had continued to perform well over the second half of the year.

In a trading update for the financial year ended March 31 2019, Severfield said the market for structural steel in India also continues to improve. It said its overall trading performance continues to be in line with management’s expectations.

Severfield, which is led by chief executive Alan Dunsmore, said its financial position remains good and year-end net funds were approximately £25m.

The statement added: “The order book of £274m as at April 1 2019 continues to include a high proportion of smaller, lower risk projects which typically have shorter lead times. The order book also includes the first orders secured by our new European business venture, based in the Netherlands.

“The order book remains in line with our normal levels, which typically equate to eight to ten months of annualised revenue.”

“Our pipeline of potential future orders has remained stable with a good balance of work across all key market sectors. Both order book and pipeline performance are consistent with our continued progress towards our strategic targets.”

Severfield said that following extensive negotiations with all stakeholders, it has now agreed a final settlement for the remedial bolt replacement works at the Leadenhall building in the City of London, resulting in no further costs for the group.